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Why SolarCity Corp. Went Dark Today

Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of SolarCity Corp. (NASDAQ:SCTY.DL) dropped 16% today after the company released earnings.

So what: Revenue was up 52% at the solar installer to $48.6 million and adjusted loss was $0.43 per share. Installations came in at 78 MW and next quarter the company expects to install another 101 MW, which were both in-line with previous guidance.

What spooked investors today was guidance of a $0.55 to $0.65 loss per share next quarter. Analysts were only expecting a $0.53 loss per share.

Now what: The per share number shouldn't concern investors all that much and installations were largely in-line with estimates. I think there are concerns to be worried about long-term, but missing earnings estimates doesn't happen to be one of them. With growth continuing at astonishing levels and retained value on the rise I think the company is performing well. The stock isn't a steal for investors and I'm concerned about the assumption lease customers will renew in 20 years, but if you were a buyer yesterday I don't see a reason to sell today.